View full sizeSen. Michael Brubaker, R-Lancaster, hopes to get answers to lingering questions about privatizing Pennsylvania Lottery's management at a hearing he has called.AP Photo/Steve Helber, 2011

Sen. Mike Brubaker, who chairs the Senate Finance Committee, said a dearth of information exists in the public arena about this privatization move. He wants the hearing he has called to remedy that.

The Department of Revenue’s discussions were still ongoing with British-based Camelot Global Services PA LLC about extending Monday’s expiration date on the lone bid that the commonwealth received for this multi-billion-dollar private management contract. Revenue spokeswoman Elizabeth Brassell said late Friday afternoon, a decision is not expected until Monday.

A Camelot spokeswoman said she had no update to share about the bid extension discussions.

Camelot is pledging to increase profits from the $3.5 billion lottery operation annually for the next 20 to 30 years. Over the next two decades, it commits to boosting lottery profits by at least $34 billion provided lottery expansion to include Keno and Internet-based games occurs. It is putting up $150 million in cash collateral and a $50 million line of credit that the commonwealth can tap if Camelot falls short of its profit target.

Brubaker, a Republican, said his office isn’t involved in the extension discussions but, “it would certainly be my hope that if there’s an extension, the extension goes beyond our hearing. That would be my desire.”

Knowing the Senate is planning a hearing provides a good reason for Corbett to push for the extension and postpone a decision, said Muhlenberg College political science professor Chris Borick.

“I think for the very image of looking like he is giving this some form of a full public airing, the governor has to consider a postponed announcement,” Borick said.

Corbett’s press secretary Kevin Harley declined comment on the possible timing of the governor’s decision on the lottery privatization in light of the on-going discussions with Camelot about the bid extension.

Brubaker said he will enter the hearing neutral on the idea about privatizing the 41-year-old state lottery that exclusively goes to funding programs and services for older Pennsylvanians.

Administration officials say that population of people 60 and over is growing and that is fueling their interest in a private management contract that offers predictable and increased lottery profits to accommodate the rising demand for services. Brubaker said one of the questions he hopes to get answered is whether the intention is for the promised increases in lottery profits will continue to exclusively go into senior programs.

He also hopes to air out questions that have been raised about whether the executive branch has the authority to sign a contract of that magnitude without legislative approval. He wants to learn more about the bidding process that culminated in only one bid.

Brubaker said he hopes to find out about Camelot and its experience in running the $10 billion-a-year United Kingdom lottery and how that lottery compares to Pennsylvania’s. He wants to hear about the income projections that are being promised.

And he hopes to hear from the American Federation of State, County and Municipal Employees Council 13, which represents some of the 160 to 170 lottery employees who will lose their state jobs if this contract is executed.

AFSCME 13 is in the process of putting together a counter-proposal to Camelot’s bid that they hope will dissuade Corbett from handing the running of the lottery to a private firm. Fillman has said once it goes private, bringing it back in-house won’t be easy.

Brubaker and his staff are still in the process of determining who will be invited to testify at the one-day hearing. But the senator said it is imperative to him that the hearing be balanced and all perspectives be heard.

“We want to do a fair job at vetting this process and extract as much good quality factual bi-partisan or non-partisan information,” he said.

In the House, state Rep. Paul Clymer, R-Bucks, has a pending request in to House Majority Leader Mike Turzai, R-Allegheny, for that chamber to hold a hearing on the privatization. Turzai and House Speaker Sam Smith are monitoring the lottery privatization process and discussing whether or not to hold hearings with the appropriate committee chairmen, said House Republican Steve Miskin.

Meuser pointed out that administration officials participated in an April legislative hearing as well as have had conversations with close to 200 lawmakers about the initiative already. Still, he said they stand ready to answer any lingering questions but indicated those questions “need to get answered in a short-period of time.”

Borick said it might be wise for the administration give lawmakers their room for input and legislative review before Corbett acts.

He said, “In the big picture, it’s something that if the governor wants some type of cover and some type of broader buy-in, going to the Legislature and at least letting them have some time to hold hearings before he acts is probably good politics, if not good governing.”

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